Shoe and clothing brands in Pakistan warned against ‘misleading marketing’

• Brands in breach of the Directive to deal with enforcement measures: CCP.
• Discrepancies were observed in approximately 96% of stores.
• The CCP advises consumers to be vigilant when shopping.

ISLAMABAD: The Competition Commission of Pakistan (CCP) has warned footwear and apparel brands to ensure full and visible disclosure of real and reduced prices on sale items, The news reported on Sunday.

“Brands that violate this directive may face enforcement actions from the CCP,” said the advisory issued by the CCP.

During the ongoing seasonal increase in sales, particularly in clothing and footwear brands, the CCP has uncovered instances of deceptive marketing practices. Preliminary investigations indicate that such practices may breach Section 10 of the Competition Act, 2010, constituting misleading marketing.

CCP’s research and preliminary research identified 27 brands offering “flat” discounts on their products. However, the CCP noted that the “flat rate discount” did not apply to all items. The discount advertised outside the store was higher than the actual sales prices inside. The “terms and conditions” disclaimer had an illegible font size. In many cases, the terms and conditions were not mentioned at all.

In addition, some offers, such as ‘flat rate 50% plus 20% on bank cards’, had different terms for online and retail purchases, leading to confusion and potentially misleading consumers into uninformed purchases.

These discrepancies were observed in approximately 96% of the stores surveyed. This lack of disclosure containing key information hinders consumers’ ability to make informed decisions.

The CPC has advised consumers to exercise vigilance and thoroughly review the terms and conditions of discounts and sales offers to avoid falling prey to deceptive marketing practices.

The CCP has already issued “Guidelines Regarding Section 10: Deceptive Marketing Practices”, which also prohibit “Bait and Switch Advertising”. It is the act of advertising a product at a low price but charging a higher price at the point of purchase.

These guidelines emphasize the responsibility of businesses to ensure clear disclosure of terms and conditions in all media to avoid creating false impressions about the goods offered. Disclaimers and qualifications in fine print that are difficult to read or hide important information are strongly discouraged.

The CCP remains committed to its mandate under the Competition Act, seeking to ensure free competition, enhance economic performance and protect consumers from anti-competitive behaviour.